Measuring Labor Market Frictions: A Cross-Country Comparison

Geert Ridder () and Gerard van den Berg

No 814, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we define and estimate measures of labor market frictions using data on job durations. We compare different estimation methods and different types of data. We propose and apply an unconditional inference method that can be applied to aggregate duration data. It does not require wage data, it is invariant to the way in which wages are determined, and it allows workers to care about other job characteristics. The empirical analysis focuses on France, but we perform separate analyses for the USA, the UK, Germany and the Netherlands. We quantify the monopsony power due to search frictions and we examine the policy effects of the minimum wage, unemployment benefits and search frictions.

Keywords: job search; minimum wage; monopsony power; cross-country comparisons; search frictions; wages; mobility; labor market policy (search for similar items in EconPapers)
JEL-codes: C4 C5 J3 J6 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2003-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

Published - published in: Journal of the European Economic Association, 2003, 1 (1), 224-244

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Related works:
Journal Article: Measuring Labor Market Frictions: A Cross-Country Comparison (2003)
Working Paper: Measuring Labour Market Frictions: A Cross-Country Comparison (2003)
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